EBRD joins with BII and Proparco to support trade in Ukraine

This article is brought to you in association with EBRD.

• EBRD partners with BII and Proparco on trade finance activities in Ukraine
• Risk-sharing guarantees worth a total US$ 57 million provided by the two institutions for the EBRD’s Trade Facilitation Programme  
• Arrangement supports EBRD’s trade finance exposure in Ukraine and enables import and export of critical goods   

The European Bank for Reconstruction and Development (EBRD) is joining forces with the UK’s development finance institution, British International Investment (BII), and the French development agency, Proparco, to support Ukraine‘s cross-border trade.

The two institutions are providing the EBRD with risk-sharing guarantees for the EBRD’s Trade Facilitation Programme, sharing the risk on the EBRD’s trade finance exposure in Ukraine: BII is providing up to US$ 37 million, while Proparco is providing US$ 20 million.

The arrangement builds on a plan drawn up last year by development finance institutions to collaborate on co-investments in Ukraine’s private sector. It will enhance the EBRD’s capacity to underwrite import and export activities in Ukraine, ensuring that the country can continue trading with its international partners, and provide vital goods and services to its citizens.  

Since Russia launched its full-scale war on Ukraine in 2022, trade flows and supply chains in Ukraine have been severely disrupted. On top of the physical disruption to land and transport routes, access to financing for Ukrainian importers and exporters has been severely constrained, with international banks shying away from taking direct risk on Ukrainian trade finance transactions.

The EBRD’s Trade Facilitation Programme (TFP) – a key part of the Bank’s efforts to restore the global and regional food and energy supply chains – has supported more than €1.4 billion in trade transactions for the most crucial goods for the Ukrainian economy since the war began. Trade is one of the EBRD’s five investment priorities in Ukraine, along with energy and food security, and support for vital infrastructure and the private sector. 

Odile Renaud-Basso, EBRD President, said: “We warmly welcome this cooperation by development finance institutions on our trade finance work, which is a key element in our financing for Ukraine. Such collaborations will increase the scale, efficiency and quality of recovery efforts in Ukraine.”

Leslie Maasdorp, Chief Executive Officer of BII, commented: “British International Investment is proud to stand with the EBRD and Proparco in supporting Ukraine’s cross-border trade during the ongoing conflict. By providing risk-sharing guarantees, we are helping to ensure that Ukraine can continue its import and export activities, which is crucial for maintaining the flow of vital goods and services to its citizens. This collaboration underscores our commitment to fostering economic growth and stability in regions facing adversity.”

Françoise Lombard, Chief Executive Officer of Proparco, said: “We are proud to partner with the EBRD and BII on this vital initiative. Strengthening trade finance is crucial—it enables Ukrainian banks to maintain essential trade operations, keeping businesses running and ensuring critical supplies reach those in need. DFIs stand firmly alongside Ukraine, supporting its journey toward a stronger, more resilient future.”

BII is an impact investor with over 75 years’ experience of investing in emerging economies. Backed by the government of the United Kingdom, BII’s mission is to help solve the biggest global development challenges by investing patient, flexible capital to support private sector growth and innovation. It has investments in over 1,580 businesses across 65 countries and total net assets of £8.5 billion.

Proparco is the private sector financing arm of Agence Française de Développement Group (AFD Group). It has been promoting sustainable economic, social and environmental development for over 45 years. Proparco provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and the Middle East.

The EBRD is a committed and steadfast partner of Ukraine. Over the last 30 years the Bank has been the largest institutional investor in the country, with cumulative investment of over €22 billion through more than 600 projects.